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China is not good at normal taxation. Local governments mostly get their money from property "sales" (long-term leases) and loans (mostly off-books these days)
by peterfirefly 3y ago
China is not good at normal taxation. Local governments mostly get their money from property "sales" (long-term leases) and loans (mostly off-books these days). China has tried to enact property taxes but the push back was so big the government backed off.
It is gonna be real rough soon.
- seanmcdirmid 3y agoChina has an income tax and VAT, but the central government takes most of that, leaving most local governments incredibly underfunded. Property taxes could solve that, land transfer taxes can only be collected when property is built (and so they build).
- peterfirefly 3y ago> China has an income tax and VAT, Both are fairly low.